Farm Bankruptcies Amid COVID-19
Financial concerns are front and center as farmers navigate the challenges of COVID-19.
Farm bankruptcies were rising before the coronavirus pandemic, and more challenges are ahead. John Newton, an Economist with the AFBF, says that the trend is concerning. Newton states, “What we’ve seen is over the last 12 months ending March 2020 is Chapter 12 bankruptcies in the United States totaled 627 filings, that is up 23 percent.”
Newton says that those bankruptcies occurred prior to the coronavirus pandemic, which has resulted in steep declines in commodity prices. “We did see the administration roll out the Coronavirus Food Assistance Package with $16 billion dollars in support to agriculture...” according to Newton, “Farmers are going to face struggles with high unemployment, loss of off-farm income, and with farm debt at a record $425 billion dollars, that could increase farm loan delinquencies.”
Farmers affected by the coronavirus can apply for CFAP by visiting their local USDA Farm Service Agency or online by clicking HERE.
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